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Tax Planner - Capital Gains tax

Generally speaking, does Tax Planner have an issue with figuring tax on a Capital Gain from the sale of rental property?
I plugged (user entered) the Capital Gain (long-term) amount into Tax Planner after figuring the Capital Gain using TurboTax. Bottom line, TurboTax figured a very different and much higher tax on the same info Quicken had. TurboTax says theirs is correct, and I believe them, but Quicken's tax is much lower, even on a higher Taxable Income!
I'm just trying to understand if there is a weakness in the Quicken Tax Planner regarding this type of Capital Gain, or if I need to search for my own mistake in Quicken Tax Planner.
Thanks

Best Answers

Answers

  • FrankxFrankx SuperUser ✭✭✭✭✭
    Hi @DR806,

    Is the difference only in the calculation of the tax on the sale of the rental property, or is it also caused by othergains/income?

    Frankx


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  • DR806DR806 Member ✭✭
    Hi @Frankx
    Hard to tell for sure, but I think probably on the Capital Gain. There is only one Capital Gain, and it's related to a Sch E loss. There is other income (Sch C and Wages), but all that is fairly straightforward. I did not attempt to compare the tax amounts between the two programs without the Capital Gain. I just know Capital Gains can have different tax rates (maybe?), but do not know a lot about them. I was just thinking (hoping) that Tax Planner might be rather weak, or maybe not very exact, on this specific issue, and that's what caused my difference.
    Thanks
  • DR806DR806 Member ✭✭
    Hi @Frankx and @J_Mike

    Ah, depreciation recapture... particularly at the higher rate is most likely what caused the tax liability in TurboTax to be more. Knew there was depreciation recapture, didn't realize the tax rate could be so different. Should have known.

    Again, I had just plugged the Capital Gain number into Tax Planner and since Quicken had most of my other data, was expecting a different (lower) tax liability once I got thru in TurboTax.
    (By the way @Frankx , Quicken had the lower tax liability.)

    Thank you both VERY much. I believe that explains it.
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